FTX, a popular cryptocurrency exchange, has reportedly recovered more than $5 billion in assets, according to a statement made by Sullivan & Cromwell bankruptcy attorney Adam Landis during a hearing on Wednesday. The attorney stated that the assets recovered included liquid cryptocurrencies, cash, and investment securities, which were valued at the date of the petition.
Landis clarified that the assets recovered do not include holdings dozens of illiquid crypto tokens. These tokens’ positions are so large that the exchange cannot sell them without affecting the market.
Although the news that FTX has recovered its assets is a good development, it is worth noting that the amount FTX owes its creditors following its collapse is not yet known. FTX management stated that the figure was between $1 billion to $10 billion in early bankruptcy filings.
It is not clear what caused the collapse of the exchange and how the assets were recovered. It’s not clear if it was voluntary or involuntary. This case illustrates the importance of financial management and record-keeping in the crypto industry.